Preparationmoves forward for LFP Cathode Material supply in North America by SK On.
## SK On and L&F Partner to Strengthen U.S. Battery Market Presence
SK On, a leading South Korean battery manufacturer, and L&F, a prominent Korean battery materials company, have joined forces to bolster their presence in the rapidly expanding North American battery market. The partnership, announced in July 2025, aims to establish a long-term, stable supply chain for lithium iron phosphate (LFP) cathode materials, a technology that currently accounts for approximately 80 percent of the global energy storage system (ESS) market [1].
The collaboration comes as SK On prepares to meet the anticipated surge in ESS demand in the United States, driven in part by the expansion of artificial intelligence (AI) data centers and renewable energy infrastructure [2]. To meet this demand, SK On plans to repurpose existing production lines for LFP manufacturing and integrate LFP technology into its U.S. operations [2].
The partnership is expected to provide SK On with a reliable, domestic source for LFP cathode materials, mitigating risks associated with geopolitical tensions and global supply chain disruptions [1]. This strategic move is particularly significant given recent U.S. policy developments, such as the passage of major tax and expenditure bills, which have clarified incentives for domestic battery production and ESS deployment [1].
SK On currently operates two plants in the U.S. and is building four more with partners. Once these facilities are completed, SK On projects an annual production capacity exceeding 180 gigawatt-hours, positioning it as a major player in the North American battery market [2]. The collaboration with L&F is expected to be a cornerstone of SK On’s ability to offer U.S.-made LFP batteries with localized materials, enhancing competitiveness in the region [2].
SK On and L&F have already begun discussions to determine delivery quantities and terms for the partnership, with L&F shipping LFP cathode samples from a pilot line and conducting final product tests [1]. Both companies are also making organizational preparations, such as establishing a new corporate entity dedicated to LFP cathode production [1].
The partnership is designed to evolve into a formal, long-term supply contract as both companies finalize technical and commercial details [1][2][3]. By integrating LFP technology into its U.S. operations, SK On is strengthening its value chain and enhancing its ability to compete with other major battery producers [3].
### Key Points of the SK On–L&F Partnership
| Aspect | Details | |-----------------------------|-----------------------------------------------------------------------------------------| | **Agreement Type** | MOU for LFP cathode supply, with plans for long-term contract [1][2][3] | | **Market Focus** | North America, especially ESS and mid- to low-priced electric vehicles [1][2][3] | | **Localization Strategy** | Repurposing U.S. production lines for LFP batteries; localized cathode supply [2][3][4] | | **Production Capacity** | Over 180 GWh/year in the U.S. once new plants are operational [2][3] | | **Current Status** | L&F pilot line production/testing; SK On preparing for full-scale LFP rollout [1] | | **Strategic Impact** | Strengthens SK On’s U.S. supply chain, responds to ESS demand surge, reduces dependency on external suppliers [1][2][3] |
The SK On–L&F partnership marks a significant step in SK On’s strategy to establish a robust, localized LFP battery ecosystem in North America. By securing advanced cathode materials from a trusted partner and adapting its U.S. production infrastructure, SK On is positioning itself to capitalize on the explosive growth of the ESS market and strengthen its competitive position in the United States [2][3][4]. This collaboration not only mitigates supply chain risks but also aligns with broader industry and policy trends favoring domestic battery production and renewable energy integration.
Sources: [1] SK On and L&F Sign MOU for LFP Cathode Supply in North America. (2025, July 1). Retrieved from https://www.skon.com/news/sk-on-and-l-f-sign-mou-for-lfp-cathode-supply-in-north-america [2] SK On to Transform U.S. Production Lines for LFP Batteries. (2025, July 15). Retrieved from https://www.skon.com/news/sk-on-to-transform-us-production-lines-for-lfp-batteries [3] SK On and L&F to Establish Long-Term Partnership for LFP Cathode Supply. (2025, August 1). Retrieved from https://www.l-f.com/news/sk-on-and-l-f-to-establish-long-term-partnership-for-lfp-cathode-supply [4] SK On's Localization Strategy in the U.S. (2025, September 15). Retrieved from https://www.skon.com/about/strategy/localization-strategy-us
- The SK On-L&F partnership, with its focus on natural resources (lithium iron phosphate cathode materials), technology (LFP technology), and industry (battery manufacturing), intends to capitalize on the growth of the renewable energy sector, particularly in the United States, where the expansion of artificial intelligence data centers and clean energy infrastructure is anticipated.
- Given the importance of reliable and stable supply chains in the finance sector, especially considering geopolitical tensions and global supply chain disruptions, the collaboration between SK On and L&F aims to provide SK On with a domestic source for LFP cathode materials, bolstering its competitiveness in the North American battery market and reducing dependency on external suppliers.
